The power ministry in 2015 notified that power-generating units operating for more than 25 years would either be retired or replaced with efficient super-critical units, which use less coal and water but have high emission standards. Replacement with better technology would entail higher costs and thereby mean costlier power for consumers. Recently, Power Minister R K Singh clarified that the impact on final tariff would be close to 60-90 paise per unit. Average tariff for coal-based power in India is around Rs 4-5 a unit. Escalation in tariff might hurt power distribution companies but the government expects to meet its climate change-mitigating targets through this move.
Business Standard does a round-up of the 25-year-old veteran power units and their status at present.